Bethlehem expected to pass amusement tax

Bethlehem plans to add a 5 percent amusement tax to music and sports events, a move that would bring an estimated $600,000 into city coffers.

NICOLE RADZIEVICH

Bethlehem plans to add a 5 percent amusement tax to music and sports events, a move that would bring an estimated $600,000 into city coffers.

According to an ordinance draft Mayor John Callahan submitted to city council this week, the tax would be imposed on tickets over $10 and capped at $1.50 a ticket.

Events that draw fewer than 200 people would be exempt.

City council has expressed support for the tax and could vote next week on whether to include the revenue in the budget.

The tax, which would likely be passed onto patrons, would affect the thousands flocking to see big names not only at the Sands Event Center, but also large concerts at the ArtsQuest Center at SteelStacks and at the ticketed concerts at Musikfest.

Officials at Sands and ArtsQuest initially expressed concern over the fee, but now say they are on board.

Jerry Deifer Vision Entertainment Group, which partnered with the Sands to bring in the Event Center, initially said such a tax was not factored into its business plan six months ago when it opened and suggested it would hurt future investment. Deifer said Thursday he's comfortable with the current proposal.

ArtsQuest President Jeff Parks described the tax as "not a welcome act," but said it would not have a significant impact on ticket sales, noting it's smaller than the state sales tax.

The city would not apply the tax to high school events, or events of "public subdivisions."

But events on college campuses, such as the Zoellner Arts Center at Lehigh University, would be taxed if the event meets the other criteria.